The US Dollar (via DXY Index) is extending its winning streak to five consecutive days, seeking to close out each day this week positive. Even with US Treasury yields taking a step backwards this morning, the DXY Index has been able to push to a fresh 2018 high again this week, moving up to its greatest elevation since December 18, 2017.
Two pieces of news stick out from the overnight that may be contributing to the shape of price action this morning. First, the Chinese government denied reports that it would introduce efforts to reduce the US' trade deficit by $200 billion. While this seemed outlandish from the get-go, perhaps it is a sign that the conversation is progressing towards resolution - which serves to the US Dollar's benefit.
The second item of news on Friday has been the completion of a joint political program by Lega and the Five Star Movement, which effectively outlines the policies that the two populist parties want to strive to achieve. With Italian yields creeping up and credit default swap spreads widening out, it's safe to say that political risk is emerging once again for the Eurozone - which servers to the Euro's detriment.
Finally, April Canadian CPI and Retail Sales figures this morning came out on the disappointing side, with the former missing expectations and the latter posting mixed results. The Canadian Dollar, which had been rallying versus its non-USD peers this week, has fallen back after the dual data reports were released.
See the above video for technical considerations in EUR/USD, USD/JPY, CAD/JPY, GBP/USD, and Gold.
Disclosure: DailyFX, the free news and research website of leading forex and CFD broker FXCM, delivers up-to-date analysis of the ...
Disclosure: DailyFX, the free news and research website of leading forex and CFD broker FXCM, delivers up-to-date analysis of the fundamental and technical influences driving the currency and commodity markets. With nine internationally-based analysts publishing over 30 articles and producing 5 video news updates daily, DailyFX offers in-depth coverage of price action, predictions of likely market moves, and exhaustive interpretations of salient economic and political developments. DailyFX is also home to one of the most powerful economic calendars available on the web, complete with advanced sorting capabilities, detailed descriptions of upcoming events on the economic docket, and projections of how economic report data will impact the markets. Combined with the free charts and live rate updates featured on DailyFX, the DailyFX economic calendar is an invaluable resource for traders who heavily rely on the news for their trading strategies. Additionally, DailyFX serves as a portal to one the most vibrant online discussion forums in the forex trading community. Avoiding market noise and the irrelevant personal commentary that plague many forex blogs and forums, the DailyFX Forum has established a reputation as being a place where real traders go to talk about serious trading.
Any opinions, news, research, analyses, prices, or other information contained on dailyfx.com are provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.